I like the new Nano. The previous Nanos had a cheap clickwheel that was really thin compared to the Mini or the Classic, making it annoying to scroll. Everything was in menus, I always found it confusing and the interface was really boring. It was awesome compared to other players, but now with the iPhone and iPod Touch, the Nano was actually complicated to use, and the clickwheel made navigation very linear.
I think the touchscreen is awesome, but I think the design is a bit strange: the design resembles the new Shuffle, with rounded metal, but the screen resembles the iPhone with the shiny black bezel, and the two don't really look symmetrical and good together. I'm sure there was no other way to make it smaller, but I think they will figure it out one day, and it will probably look like a tiny, square iPod Touch with a curved back and entirely symmetrical edges.